Irrevocable Trust- step up basis possible? - Spidell

Irrevocable Trust- step up basis possible?

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Message Board Irrevocable Trust- step up basis possible?

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    • #331615
      Susan Banks
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      Upon deaths of grantors is step up of basis possible?  Children inherit child hood home which has been rented and depreciated since death of last parent.  Now they have sold it out of the trust.  What is the basis?

    • #331636
      Anonymous

      It is more accurate to refer to an adjustment of basis to FMV, rather than a “step up”.  It could be a step-down.

      You need to determine who/what owned the property at time of death.  An adjustment of basis to FMV applies to property inherited from an individual who died.  A trust is neither an individual nor does it die. See Pub 551 for more information.

       

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